In a surprising move, Tesla has raised the price of its top-tier “Cyberbeast” model by $15,000, bringing its total cost to $115,000. This decision comes as the company faces declining sales figures for the Cybertruck, which has failed to meet initial expectations despite a growing electric vehicle (EV) market. The price hike includes a bundled software package and additional perks aimed at enhancing the overall value of the vehicle.
Tesla is currently experiencing significant challenges in sales across multiple territories, even as the demand for electric vehicles is on the rise. The company's performance has been negatively impacted by CEO Elon Musk, whose controversial decisions have drawn criticism. With earnings declining, Tesla is poised to lose a substantial revenue source that has often been crucial for maintaining profitability. Notably, Musk used his personal finances to mitigate this impending revenue drop, further complicating the company's financial landscape.
To counteract the downward trend in sales, Tesla has opted for a strategy of raising prices on its premium models instead of addressing the underlying issues. Just last week, the company increased the price of its older Model S and Model X by $10,000, while introducing a new “Luxe Package.” This package includes features that many consumers consider non-luxurious, such as Full Self-Driving capabilities, tire protection, supercharging, and premium connectivity. Consequently, the base price for the top-end Plaid model now stands at $115,000.
In line with these changes, Tesla has now matched the price increase for the Cyberbeast Cybertruck, raising its base price by $15,000 to $115,000 as well. Buyers of the Cyberbeast will receive the same Luxe Package, which, while valued at $10,000 for other models, appears to carry a $15,000 premium for the Cybertruck.
The Cybertruck is available in three trim levels, all featuring the same battery but differing in the number of electric motors and performance capabilities. The top-end Cyberbeast boasts three motors, offering a towing capacity of 11,000 pounds and a payload of 2,271 pounds—figures that fall short of Tesla's initial promises. Nonetheless, it is capable of accelerating from 0-60 mph in just 2.6 seconds, making it one of the fastest pickup trucks on the market, rivaling models like the Rivian R1T Quad Max.
The new base price of $115,000 for the Cyberbeast raises concerns, especially when compared to Tesla's earlier commitments. Initially, the Cybertruck was expected to start at around $40,000, with the tri-motor model priced at $70,000. The current price for this trim level is now $45,000 higher than originally advertised, while the base model currently costs $61,000—over 50% more than the promised price.
These price increases could be contributing to the Cybertruck's failure to meet sales expectations. Tesla had originally projected the ability to produce and sell 250,000 units annually, yet current sales are closer to 5,000 units per quarter. In this challenging environment, a $15,000 price increase is unlikely to boost sales. However, given that the Luxe Package primarily consists of software features and deferred costs, it could offer a short-term margin improvement for any trucks Tesla manages to sell.
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